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Who Can Invest In India?

Who Can Invest In India?

Foreign direct investment is an essential driving force of economic growth and development of the country. It plays a significant role where domestic savings are not sufficient to generate funds for capital investments. FDI supplements the investment requirements of an economy, but it also does more than that. Foreign investment equity inflows also brings in new technology, expertise, knowledge, employment, and better infrastructure. In order to facilitate economic development, the government of India had decided to liberalize norms and policies…

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Who Can Invest In India?

Who Can Invest In India?

Foreign direct investment or FDI is when an investor based in one country makes an investment in a business of another country. A main characteristic of this type of investment is the notion of ‘lasting interest’. Lasting interest is ensured with a controlling ownership. Under foreign direct investment, the foreign investor gets a minimum of 10 per cent voting rights in the company. The notion of controlling ownership differentiates foreign direct investment with foreign portfolio investment. India, over the years…

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Who Can Invest in India?

Who Can Invest in India?

Foreign direct investment or FDI is an investment that is made by an entity placed outside the country where the investment is being made. It is characterized by a notion of direct control. Overseas direct investment is a critical driver of economic growth. Ever since the opening of the economy in 1991, the government of India has taken several reforms in FDI rules and regulation in order to attract more foreign investors to invest in the country. There are two…

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